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A recent study by the Canadian Home Builders' Association (CHBA) highlights a growing concern: Canada is constructing fewer homes relative to its population growth than ever before. This trend has exacerbated housing affordability challenges, particularly for young families seeking both rental and ownership options. The study examined 23 municipalities nationwide, focusing on municipal fees, development application timelines, and support systems for applicants. The findings indicate that prolonged approval processes and escalating development charges are significant factors hindering housing affordability and supply.
Between 2022 and 2024, while 13 municipalities reported improved application timelines, this improvement is attributed to a decline in applications due to economic challenges and costly processes. Conversely, nine municipalities experienced no change or worsening timelines. During this period, development charges increased by an average of $27,000 per unit for low-rise developments and $3,000 per unit for high-rises. Currently, the average development charge for a low-rise home is $82,600, with fees ranging from $8,700 to $195,000 across different municipalities. For high-rise units, the average charge is $35,000, with a range between $1,600 and $134,400. Notably, Ontario municipalities such as Toronto, Markham, Oakville, Brampton, and Pickering have the highest fees, while the lowest are found in Atlantic provinces like Moncton, Charlottetown, and St. John's.
Approval timelines also vary significantly, with Ontario experiencing the longest delays. For instance, Hamilton's approval process averages 31 months. The study aims to foster dialogue with all government levels, especially municipal governments, to address how extended timelines, higher fees, and process inefficiencies affect housing affordability and outcomes.
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